Insurance Vault
The Vectis Insurance Fund enhances security and efficiency for covered vaults while maximizing depositor returns. Using a JLP delta-neutral strategy, the fund generates stable yields and mitigates market risk. With 0% performance fees, depositors enjoy a cost-effective way to earn yield while providing risk protection.
Deposited JLP is used as collateral to open hedged short positions, neutralizing exposure to SOL, ETH, and BTC. This ensures that market fluctuations do not impact depositor returns, making it an ideal option for risk-averse investors.
To maintain sustainable risk management, the fund is capped at $500K, making early participation essential for those looking to maximize benefits.
Key Features
1. Enhanced Yield with Zero Performance Fees
The Insurance Fund employs a JLP delta-neutral strategy to generate stable, risk-adjusted returns. By neutralizing exposure to SOL, ETH, and BTC price movements, the fund ensures predictable earnings.
With 0% performance fees, all profits are distributed directly to depositors, ensuring maximum yield potential with no hidden costs.
2. Protection for JLP Navigator II Strategy
The fund is specifically designed to cover the JLP Navigator II vault, absorbing losses exceeding a 5% drawdown threshold. This additional layer of protection ensures that depositors’ funds remain safeguarded during unexpected market downturns.
3. $500K Cap for Sustainable Risk Management
The fund is capped at $500K to maintain long-term capital efficiency and risk sustainability. Early participation is recommended to secure a position in the fund and fully benefit from its protection and yield potential.
4. Hedged Strategy for Risk-Averse Users
Deposited JLP is used to collateralize hedged short positions, effectively neutralizing exposure to SOL, ETH, and BTC. This ensures depositor returns remain unaffected by price volatility, making it an attractive choice for conservative investors seeking stability.
Withdrawal Terms & Fees
Redemption Period
• Withdrawals are subject to a 2-day redemption period.
• While withdrawal requests can be made at any time, funds become available only after 48 hours.
• Any profits accrued during the redemption window will not be credited and will be forfeited.
Performance Fee
• 0% performance fee—all profits generated by the JLP delta-neutral strategy go directly to depositors.
• By eliminating fees, the fund maximizes user returns, ensuring full participation in its yield-generation process.
Risks
Despite its strong risk-mitigation mechanisms, the Insurance Fund is subject to several potential risks:
Fund Coverage Risk – If JLP Navigator II experiences a drawdown exceeding 5%, the Insurance Fund absorbs the loss. However, a severe, prolonged downturn could deplete reserves, impacting overall fund performance.
Smart Contract Risk – The fund interacts with Jupiter and Drift, both of which have undergone security audits. However, smart contract vulnerabilities remain a potential risk factor.
Hedging Risk – The delta-neutral approach is actively managed to minimize price exposure, but extreme market volatility in SOL, ETH, or BTC could affect hedging precision, leading to potential unanticipated losses.
Why Choose the Vectis Insurance Fund?
✔ Risk-mitigated yield generation – Delta-neutral strategy ensures stable returns.
✔ 0% performance fees ensure full yield distribution.
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